
A Shock to the System
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Content
The Coming of Competition to the Electricity Industry
Policy Initiatives Shaping Regulatory Reform
The Six Major Issues
The Goal
2. The Electricity Industry and Its Regulatory History
Functions of the Electricity Industry
Composition of the Electricity Industry
A Century of Electricity Policy
Conclusion
3. Implementing Competition: Different Levels, Different Models
Forces for Competition
The Scope of Competition
Two Proposed Market Structures
4. Market Power in Delivering Power: Regulating Electricity Transmission
Premises for Regulating Transmission
Whether to Regulate Transmission
How to Regulate Transmission
Special Features of the Transmission Industry
Conclusion
5.Restructuring Electric Utilities: The Pros and Cons of Vertical Integration
Pros and Cons of Vertical Integration
Vertical Integration Where Markets Are Not Competitive
Vertical Integration under Regulation
Key Restructuring Questions
Conclusion
6. Paying for the Past before Entering the Future: Coping with Stranded Costs
Stranded Costs throughout the Economy
Economic Principles of Regulation: How Big Could the Stranded Costs Be?
Economics of Contracts: What Was the Regulatory Compact wiht Electric Utilities?
Recovering the Costs: Practical Proposals for Handling Stranded Costs
Conclusion
7. Implications of Restructuring for Environmental Protection
Dealing with Air Pollution
How Restructuring could Affect the Environment
Restructuring and Environmental Policies
New Policies to Address the Environmental Consequences of Restructuring
Conclusion
Epilogue
Merger Policy
Entry into Telecommunications Markets
Electricity Research and Development
Social Programs
Utility Tax Policy
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